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On Tuesday, Needham reiterated its Buy rating on OncoCyte Corp (NASDAQ:OCX) with a consistent price target of $4.25, representing a 28% upside from the current price of $3.33. The stock has shown strong momentum with a nearly 40% gain year-to-date, despite recent volatility. The firm’s analyst highlighted the successful ongoing co-marketing of GraftAssure RUO with Bio-Rad and OncoCyte’s continued partnerships with transplant centers. InvestingPro analysis reveals 11 additional investment tips for OCX, providing deeper insights into the company’s potential risks and opportunities. The company is preparing for the anticipated launch of its GraftAssureDx Kidney kitted test, which is expected in the first half of 2026, pending FDA approval.
OncoCyte has entered Phase 3 of the kitted test’s launch process, focusing on assay verification and validation. The company is on track with its goal to collaborate with at least 20 transplant centers across the United States and Germany by the end of 2025. These efforts are part of OncoCyte’s broader strategy to strengthen its position in the transplant diagnostics market.
The company has also made strides in financial management, successfully reducing its quarterly cash burn. OncoCyte anticipates maintaining its cash burn at approximately $6 million throughout 2025. This projection comes after the company concluded the fourth quarter of 2024 with about $39 million in pro forma cash, which includes approximately $29.1 million raised in February. According to InvestingPro data, the company’s financial health score is currently rated as ’WEAK’, with particular concerns about short-term obligations exceeding liquid assets. Subscribers to InvestingPro can access a comprehensive analysis of OncoCyte’s financial health metrics and future prospects through the exclusive Pro Research Report.
OncoCyte’s focus on financial prudence and strategic partnerships ahead of its product launch appears to be a key factor in Needham’s positive outlook. The company is positioning itself to enter the market with a strong foundation and support from the medical community. As OncoCyte advances through the necessary regulatory and validation phases, the maintained Buy rating and price target suggest confidence in the company’s trajectory and potential market impact.
In other recent news, OncoCyte Corp reported its Q4 2024 earnings, highlighting a revenue of $1.5 million from its pharma services with a 40% gross margin. The company concluded the year with $10 million in cash reserves and successfully raised an additional $29 million in February 2024. OncoCyte launched a new product, Graft Assure, aimed at kidney transplant testing, as part of its strategic advancements in the transplant sector. The company has also formed strategic partnerships and made leadership changes to strengthen its market position. Analysts from firms like BTIG and Needham inquired about the company’s regulatory pathway and clinical trial strategy, with OncoCyte confirming a de novo submission process for its FDA application. The company expects to submit its FDA application by the end of 2024, with product approval anticipated by mid-2026. Bio Rad Laboratories has emerged as a key strategic partner, participating in multiple equity funding rounds and providing support for OncoCyte’s clinical trial. OncoCyte plans to maintain a $6 million quarterly cash burn in 2025, with Q2 and Q3 expected to incur the highest expenses.
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